Macroeconomics

South Korea United KingdomVS.

Introduction

United Kingdom a leading trading power and financial center, Is the 3rd largest economy in Europe and the 6th largest world economy. Over the past two decades, The government has greatly reduced public ownership, Agriculture is intensive, Highly mechanized, And efficient by European standards, Producing about 60% of food needs with less than 2% of the labor force.

South Korea over the past four decades has demonstrated incredible growth and global integration to become a high-tech industrialized economy, it’s currently the world’s 12th largest economy. A system of close government and business ties including directed credit and import restrictions made this success possible.

The United Kingdom has 96% more chance of being unemployed

South Korea has 49% more chance at being employed

Recession in UK has led to a sharp rise in unemployment rates since 2007, Leading to a rise in Cyclical unemployment, Also Unemployment had a big effect on poverty in UK.

While South Korea achieved rapid economic growth through exports of manufactured goods, Leading to a decrease in unemployment rate.

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United Kingdom South Korea

Unemployment

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The United Kingdom spends 92% more money on health care

South Korea spends 48% less money on health care

South Korea does not have a strong community-based primary-care system, Also governance of the health system does not sufficiently reinforce quality of care as a key priority.

While UK was ranked as 18th best healthcare system in the world by WHO. Due to better medical technologies and different healthcare habits

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Health Expenditure

United Kingdom

South Korea

The United Kingdom uses 29% less electricity

South Korea uses 41% more electricity

UK is one of the most energy secure countries in the world, Energy consumption in UK is low, Because they are more efficient in producing energy and using it.

While South Korea is one of the world’s leading energy importers. Relying on sources such as fossil fuels in consuming electricity.

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Consumption Of Electricity

The United Kingdom consumes 38% less oil

South Korea consumes 61% more oil

South Korea’s oil consumption rates have fluctuated alongside its economy, oil consumption grew at a rapid pace with economic growth.

While in UK Aging reservoirs and infrastructure have affected UK's oil production over the last few years, with production decline rate increases and wide-spread outages as a result of technical problems.

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Consumption of oil

United Kingdom

South Korea

The United Kingdom makes 26% more money

South Korea makes 21% less money

Economy of UK is not growing fast enough, central banks may lower interest rates to make borrowing more attractive, which leads to a rise in GDP, Deflation occurs.

While South Korea’s economy is growing fast, which leads to shortages, interest rates increase, GDP falls, A sustained rise in the prices of commodities leads to Inflation.

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GDP

United Kingdom

South Korea

The United Kingdom has 24% more babies

South Korea has 19% less babies

South Korea has the lowest fertility rate in the world, improvements in education lead to a decline in the ratios of offspring to the elderly because better-educated people have fewer children.

While in UK, the main cause of population growth remains high net inward migration flows and that leads to an increase in birth rates.

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Birth rates

United Kingdom

South Korea

The United Kingdom has 13% more chance of dying in infancy

South Korea has 12% less chance of dying in infancy

UK has high child mortality rates compared to some of the best performing countries in Europe, Many are due to risky behaviors during pregnancy like smoking, And drinking alcohol .

While South Korea’s low infant mortality is due to effective public provision of basic social services.

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Infant Mortality

United Kingdom

South Korea

The United Kingdom experiences 9% more of a class divide

South Korea experiences 8% less of a class divide

UK experience more of a class divide due to income, occupation, and education inequality, income inequality occurs because of differences in wealth.

While in South Korea rapid economic growth, industrialization, and urbanization contributed to the reduction of income inequality.

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Social Class

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Conclusion

The findings presented in these slides show clearly that, South Korea became very successful comparing to UK due to its fast growing economy, The success of industrialization and the development of South Korea’s industries led to investing in places such as USA.

Job losses and a rising rate of unemployment are notable features of a recession, UK is facing the threat of deflation due to the lack of demand for credit, With UK being a high income country, People are willing to spend more money on health care expenditures comparing to South Korea.

UK is one of the most unequal societies, And it’s no coincidence that child mortality rates are high there.

Thank You !

Economy & Finance

Macroeconomics